Key Takeaways:

  • Bitcoin and Ether continuous futures launching on December 15th.
  • 10-year contract term with daily cash adjustment.
  • Aims to provide similar trading tools as traditional futures markets.
  • Contracts cleared through Cboe Clear US to reduce counterparty risk.

Cboe Global Markets, a leading U.S. exchange operator, is preparing to launch its 'continuous futures' product for Bitcoin and Ether on December 15th. These new contracts aim to offer investors a way to gain long-term exposure to these digital assets on its futures exchange.

According to the company's announcement, the contracts come with a 10-year term and a daily cash adjustment designed to mirror the economics of perpetual futures, eliminating the need to roll expiring positions. Futures are commonly used for hedging or speculation, allowing traders to buy or sell an asset at a set price on a future date.

Cboe emphasizes that the new structure is intended to provide investors with the same tools they rely on in traditional futures markets, including capital efficiency, volatility hedging, tactical trading, and the ability to take short exposure. The contracts will be cleared through Cboe Clear US to mitigate counterparty risk, with margin rules aligned to Commodity Futures Trading Commission (CFTC) standards and potential cross-margining with existing Cboe Futures Exchange (CFE) crypto futures. Subject to regulatory approval, trading will occur 23 hours a day, five days a week.

This announcement comes at a time of significant growth in the cryptocurrency futures market. While U.S. regulators had long prevented exchanges from listing crypto futures products, their stance shifted under the Trump administration, creating room for new crypto-derivative offerings. On April 21, the CFTC requested public feedback on the potential benefits and risks of perpetual derivatives, seeking input on how these products function, how they might be used in trading and clearing, and any implications for market integrity and customer protection.

In March, Bitnomial crypto exchange announced the launch of the first CFTC-regulated XRP futures in the U.S., and in July, Coinbase announced plans to launch nano-sized Bitcoin and Ether perpetual contracts. According to CoinMarketCap data, open interest on perpetuals in the crypto market was approximately $767 billion on Monday.

In conclusion, Cboe's launch of Bitcoin and Ether continuous futures marks a significant development in the cryptocurrency market, providing investors with new and improved trading tools to manage risk and capitalize on opportunities.


Risk Warning: this article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform.When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice. Trading cryptocurrency CFDs and spread bets is restricted for all UK retail clients. 

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